Alleging environmental damage, Dutch nonprofit files 1.4-billion-euro claim against Tata Steel Netherlands | Business News

The TSN plant in IJmuiden in the province of North Holland spans 750 hectares, and is spread over three municipalities—Velsen, Beverwijk, and Heemskerk. The plant produces 7 million tonnes of high-quality steel every year, and employs over 9,200 people, according to the TSN website. The plant came into the Tata Steel fold when the Indian company acquired British-Dutch steelmaker Corus Group plc in 2007.

The proceedings initiated by SFW concern a collective action under the Dutch Act on Collective Settlement of Mass Claims (WAMCA), Tata Steel said. WAMCA is the legal framework in the Netherlands for class action lawsuits in that country. A class action suit is a case where typically a few people or entities sue a large company or organisation on behalf of a large group of people who claim to have suffered similar harm from that defendant company or organisation. Such lawsuits allow individuals with small claims to pool resources and share legal costs of the case.

“According to TSN, SFW has provided no supporting evidence for the claim, making it unsubstantiated and speculative. TSN rejects their claims being without any basis,” Tata Steel said. The steel major added that the proceedings of the lawsuit, which is being funded by third party financiers, will be conducted in two phases—admissibility and merits—each of which is likely to take two-three years to conclude, and therefore, the debate on the quantum of claims is not expected in the upcoming years.

Following the disclosure by Tata Steel about the lawsuit, shares of the company fell over 1 per cent intraday on Friday, before recovering slightly to end 0.6 per cent lower at Rs 169.05 on the National Stock Exchange.

“TSN considers that it has strong arguments to defend against the claims and will vehemently defend itself against these claims. Health and a clean-living environment remain key priorities for TSN, as they do for local residents and stakeholders. Through substantial investments…TSN has achieved significant improvements in areas of concern for the neighbouring community over the past five years. Additionally, TSN consistently ranks among the leading global blast furnace-based steel producers in terms of CO2 (carbon dioxide) efficiency, with performance metrics well below both European and global averages,” Tata Steel said.

According to the steel major, TSN has been investing and working on initiatives to improve the living environment and reduce impact of its operations on the surrounding community.

“As part of the Green Steel Plan, developed through a Joint Letter of Intent with the Dutch Government, the Company and TSN have engaged with stakeholders to define additional targeted measures that extend further beyond legal requirements. Alongside decarbonization initiatives intended to promote a healthier living environment, TSN is dedicated to minimizing its contributions to coarse and fine particulate matter (PM10) emissions, as well as reducing annual releases of substances of very high concern, NOx, SO₂, odours, and noise,” Tata Steel said.